A simple heuristic for ending up in better financial shape in the long-run

17 February 2015

reading time:  minutes

Never borrow money to purchase a car. 

(As with all heuristics, there are exceptions. For example, if you can get finance at rate that’s lower than the rate of inflation, or even what you’d get from a savings account. It’s likely to be better to invest your money elsewhere at a higher rate of return. So long, of course, as the loss that the dealer/financier/manufacturer is making on the finance isn’t baked into the price of the vehicle!) 


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About the author 

Sonnie Bailey

Sonnie provides financial planning services via his business, Fairhaven Wealth (www.fairhavenwealth.co.nz). Fairhaven Wealth provides independent, advice-only, fixed-fee financial planning services. Sonnie is also a “recovering lawyer”: he has specialised in financial services, trusts, and estate planning.

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